Enterprise Metals (ASX:ENT) has signed an option agreement with privately held Century Minerals to conduct exploration at the Eneabba East Project in Western Australia.
Eneabba East is considered prospective for zircon, monazite, rutile, ilmenite, rare earths, and base metals. The project lies 300km north of Perth in the North Perth Basin.
Century has granted Enterprise the sole and exclusive option to evaluate the Eneabba East’s exploration licences for a 12-month period.
Under the agreement, Enterprise will issue 20 million shares at $0.003 per share to Century — which is equivalent to $60,000 — along with one option per share, exercisable at $0.0045 for two years..
Enterprise will also issue 28.75 million shares at $0.004 per share as compensation for 70% of Century’s direct in-ground expenditure on the project to date.
During the option period, Enterprise will be responsible for the necessary funding.
Upon completion of the option period, Enterprise has agreed to issue Century 50 million shares, along with 10 million more if exploration drilling intersections exceed 25m at an average of 3% heavy minerals or greater.
If an inferred or higher resource exceeds 1 million tonnes of heavy mineral concentrate, Enterprise will also issue 20 million shares to Century.
Once the transaction is complete, an incorporated joint venture will be established with Century holding a 30% interest and Enterprise holding the remaining 70%.
Enterprise must conduct exploration activities within the first two years and solely fund a minimum of $600,000 on exploration and development at Eneabba East.
If the minimum expenditure is not met, Enterprise will be considered to have withdrawn from the joint venture and will sell its interest in the project to the seller for $1.
In addition to the option agreement, Enterprise also announced this morning the completion of a private placement raising $102,000.
The placement comprised the issue of 34 million ordinary shares at $0.003 per share.
The proceeds will be used to advance the company’s exploration programs including drill testing gold targets at the Doolgunna and Mandilla projects, geophysical surveys for base metal targets at Murchison, and general working capital.
Write to Aaliyah Rogan at Mining.com.au
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